Chinese banks were the most profitable banks in the world in 2012 with the top 10 banks in China in 2013 achieving aggregate pre-tax profits of $231.3bn, a 16.1% increase on the previous year. But as the world’s second largest economy slows down, will bank profits in 2014 feel the negative effects?
In 2013, the top 10 Chinese banks all saw more than double-digit pre-tax profits growth (except for Bank of Communications with 9.5%), but 2014 may prove more problematic. Jiang Jianqing, chairman of the world’s largest bank, Industrial and Commercial Bank of China (ICBC), says: “In the past 10 years, ICBC managed a 28% growth in profits every year, but when we look to the future we cannot sustain that 28% figure, it will be a bit lower. We need to look to sustainable growth in the future.”
